The impact of multinational and domestic enterprises on regional productivity: the evidence from the UK

The paper explores the effects of Multinational and Domestic Enterprises (MNEs and DOMES respectively) on regional productivity both in theory and in the case of UK regions. Our empirical evidence shows that MNEs are more intensive in terms of R&D and intangibles and this has a stronger effect on regional productivity. This result however is moderated by the origin of the MNEs. When we control for this, we find that DOMEs can outperform certain MNEs from specific origins. In particular, we conclude that laggard regions can more easily absorb the managerial and organisational expertise of DOMEs; and that home country-shaped MNE strategies may not be always aligned to the needs of host regions.

This is an Accepted Manuscript of an article published by Taylor & Francis in Regional Studies on 26/03/2018, available online: http://www.tandfonline.com/10.1080/00343404.2018.1447661